Toby Robert Chandler became the CEO of Structural Monitoring Systems Plc (ASX:SMN) in 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Structural Monitoring Systems

How Does Toby Robert Chandler's Compensation Compare With Similar Sized Companies?

According to our data, Structural Monitoring Systems Plc has a market capitalization of AU$92m, and paid its CEO total annual compensation worth AU$225k over the year to June 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$225k. We looked at a group of companies with market capitalizations under AU$298m, and the median CEO total compensation was AU$379k.

Most shareholders would consider it a positive that Toby Robert Chandler takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Structural Monitoring Systems has changed from year to year.

Is Structural Monitoring Systems Plc Growing?

Structural Monitoring Systems Plc has reduced its earnings per share by an average of 19% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 120%.

The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Structural Monitoring Systems Plc Been A Good Investment?

Since shareholders would have lost about 36% over three years, some Structural Monitoring Systems Plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

It looks like Structural Monitoring Systems Plc pays its CEO less than similar sized companies.